At Export Development Canada (EDC), 2022 was a year spent helping customers navigate a turbulent economy, hitting new milestones in its ambitious 2030 corporate strategy, and strengthening Environmental, Social and Governance (ESG) commitments and practices.
“When reflecting on the year that 2022 was, one cannot help but be truly inspired by Canadian businesses,” said EDC President and CEO Mairead Lavery. “Russia’s invasion of Ukraine, ongoing supply challenges due to the pandemic and surging inflation all contributed to uncertainty at a time when many businesses were looking forward to recovery and opportunity. But throughout, Canadian businesses demonstrated their resiliency and continued to find global success by exploring new markets, innovating and taking risks.”
By the end of 2022, Canada’s export credit agency served approximately 27,000 customers – the vast majority of which were micro- small- and medium-sized businesses, the backbone of Canada’s economy.
The number of small-sized customers increased 9% compared to 2021 due, in part, to successful partnerships between EDC and Canadian financial institutions and our digitization efforts, which have made it simpler and faster to access EDC services. Last year, four Canadian financial partners signed on to the enhanced version of the Trade Expansion Lending Program (TELP), which served 558 customers, an increase of 57% from the previous year.
EDC solutions facilitated $133.4 billion in business, supported 602,259 domestic jobs and generated $85 billion, or 3.7%, of the national GDP. This support included $27.6 billion in business facilitated in emerging markets, a 25% increase over 2021.
“While the global economic environment continues to be volatile, our profitability returned to a more normal level with reported net income of $1.2 billion for the 2022 fiscal year,” said Senior Vice President and Chief Financial Officer Scott Moore. “Furthermore, our loan portfolio grew by 12% year-over-year which demonstrates our commitment to supporting Canadian exporters in a challenging environment.”
Building a better future
Throughout the year, EDC made strides on its 2030 strategy, launched in 2021 with an ambitious goal of helping grow Canada’s exports by 60% by 2030, re-gaining Canada’s leadership in international trade, and continuing to lead with strong ESG practices and principles.
At the heart of the strategy are EDC’s customers and focusing on which sectors and markets present the strongest potential for international growth. For example, in the Indo-Pacific region, EDC is focusing on the sectors where Canadian expertise and strong demand overlap – agri-food, cleantech and advanced manufacturing, among others.
In 2022, EDC continued to focus on increasing its reach and support for medium-sized companies given their high-growth and export potential, and because many operate in these high-demand sectors. Last year, 1,175 medium-sized companies accessed EDC’s financial products and a further 1,800 used EDC’s knowledge solutions.
Enhancing ESG principles
In 2022, as part of its commitment to achieve net zero emissions by 2050, EDC reduced exposure to its six most carbon-intensive sectors, set new science-based climate targets for the airline and upstream oil and gas sectors, and announced several sustainable finance initiatives including for cleantech and inclusive trade.
Last year, EDC facilitated $8.8 billion in the cleantech sector, an increase of 40% over 2021. EDC also met and surpassed its climate target to reduce exposure to its six most carbon-intensive sectors from 2018 levels by 45%, achieving a reduction of 57%.
EDC also launched several ESG initiatives to further support the shift to a more equitable and sustainable future. The organization launched its Sustainable Bond Framework, which includes sustainable, social and transition bonds, in addition to green bonds.
EDC also launched the Sustainable Finance Guarantee, which is being piloted with several Canadian financial institution partners to provide companies in eligible sectors with loans and financing that support their carbon reduction initiatives.
EDC also undertook an extensive review process with stakeholders to update its policies under its Environmental and Social Review Management (ESRM) Framework to ensure they continue to follow ESG best practices, inform EDC’s business activities and address customer needs. The updated policies — ESRM Policy, Climate Change Policy, Human Rights Policy, Transparency and Disclosure Policy, and the Environmental and Social Review Directive—were recently announced and available on EDC’s website.
